Cadbury Nigeria Plc announced a pre-tax loss of N28.2 billion in FY 2023, marking a significant decline of 2269% from the N1.3 billion pre-tax profit recorded in 2022.
Financial Performance
According to the company’s audited financial statement for 2023, Cadbury Nigeria achieved a revenue of N80.4 billion in 2023, indicating a notable growth of 46% compared to the N55.2 billion reported in 2022.
In 2023, the group incurred a substantial N36.9 billion foreign exchange loss, leading to a retained loss of N11.4 billion and a negative equity of N6.5 billion.
Key Highlights (FY 2023 vs FY 2022)
- Revenue: N80.4 billion, +46% YoY
- Cost of sales: N63.0 billion, +33% YoY
- Gross profit: N17.3 billion, +124% YoY
- Selling and distribution expenses: N7.3 billion, +16% YoY
- Operating profit: N7.9 billion, +3957% YoY
- Net finance (cost)/income: -N36.0 billion, -3362% YoY
- Loss before tax: N28.2 billion, -2269% YoY
- Loss for the year: N19.1 billion, -3374% YoY
- Earnings per share: -N10.16, -3374% YoY
- Total assets: N63.4 billion, +6% YoY
Revenue Sources
The company’s primary revenue sources included refreshment beverages such as Cadbury Bournvita and 3-in-1 Hot Chocolate, which generated N52.2 billion in sales in 2023. Confectionery products like TomTom, Candy Caramel, Candy Coffee, Buttermint, and Clorets gum contributed N25.6 billion, while the newly introduced Bournvita Biscuit generated N609 million in sales.
Debt Restructuring Initiatives
With a negative equity of N6.5 billion in 2023, Cadbury Nigeria is actively pursuing debt restructuring as a necessary measure to address its challenging financial situation. As part of this strategy, the company is in the process of converting a $7.7 million debt owed to its principal shareholder, Cadbury Schweppes Overseas Limited, into equity. This move will increase Cadbury Schweppes Overseas Limited’s shareholding in Cadbury Nigeria to 79.39%.
Source: NairaMetrics